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r. <br /> -4 <br /> • <br /> • <br /> RESOLUTION NO. 54 • <br /> 1 <br /> • <br /> • <br /> I A RESOLUTION' OPPOSING CHANGE IN TAX-EXEMPT STATUS <br /> • OF MUNICIPAL BONDS <br /> RESOLVED, by the City Council of the Town of Los Altos Hills, California <br /> that <br /> WHEREAS, this City Council is informed that the Congress of the United <br /> States, in seeking .acceptable methods of tax reform, is again considering the <br /> possibility of removing or otherwise changing the tax-exempt status of interest <br /> on municipal obligations, or limiting individual tax preferences in such a manner <br /> • as to directly affect the market value of .otherwise exempt securities, and that <br /> legislation to this effect has been passed by the House of Representatives; <br /> WHEREAS, any such change would have catastrophic consequences on the <br /> economy of all local governments ,throughout the United States, including this <br /> City, in that the market for any securities of many local government agencies would <br /> disappear completely, the cost of municipal financing would materially increase for <br /> those which could 'market their 'securities at all, property taxes would universally <br /> increase to a substantial extent because of the greater expense involved in higher <br /> interest rates, 'charges for municipal utility service would substantially increase <br /> because of the higher cost of revenue financing, federal subventions would have <br /> to be increased and the cost of administering federal programs would go up <br /> proportionately, all to the material detriment of local and municipal taxpayers <br /> throughout the United States, including the taxpayers of this City; <br /> NOW, THEREFORE, IT IS DETERMINED and ORDERED, .that this City is strongly <br /> opposed to any legislation which would rescind, modify or in any way weaken the <br /> tax-exempt status of interest on municipal obligations, including the tax reform . <br /> bill which has been passed by the House, (H.R. 13270, 91st Congress, 1st session) <br /> and the honorable representatives of the State of California in the Congress of <br /> the United States are respectfully urged to oppose any such proposed legislation <br /> with vigor and fortitude. <br /> .* * * * * * * * * * '* <br /> I hereby certify that the foregoing is a full; true and correct copy of • <br /> a resolution duly passed and adopted by the City Council of the Town of Los Altos <br /> Hills, California, at a meeting thereof held on the 2nd day of September, 1969, by <br /> the following' vote of the members thereof: <br /> AYES', and in favor thereof: Councilmen Benson, Davey, Fowle, Helgesson, <br /> Mayor Aiken. <br /> NOES: None • <br /> ' <br /> ABSENT: None <br /> APPROVED• <br /> City Clerk <br /> Mayor <br />